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Effect of piracy on innovation in the presence of network externalities

Banerjee, Dyuti - In: Economic Modelling 33 (2013) C, pp. 526-532

This paper analyzes the impact of simultaneous increases in piracy (piracy effect) and network externalities (network effect) on R&D investment. A single firm's R&D investment increases (or decreases) if the network effect (or piracy effect) is dominant. With R&D competition, if the firms...

Persistent link: https://www.econbiz.de/10011048826

Corporate goodness and shareholder wealth

Krüger, Philipp - In: Journal of Financial Economics 115 (2015) 2, pp. 304-329

Using a unique data set, I study how stock markets react to positive and negative events concerned with a firm׳s corporate social responsibility (CSR). I show that investors respond strongly negatively to negative events and weakly negatively to positive events. I then show that investors do...

Persistent link: https://www.econbiz.de/10011189254

China׳s secondary privatization: Perspectives from the Split-Share Structure Reform

Liao, Li; Liu, Bibo; Wang, Hao - In: Journal of Financial Economics 113 (2014) 3, pp. 500-518

-owned enterprises (SOEs), opening up the gate to China׳s secondary privatization. The expectation of privatization quickly boosted SOE … SOE performance are positively correlated to government agents’ privatization-led incentive of increasing state …-owned share value. In terms of privatization methodology, the reform adopted a market mechanism that played an effective …

Persistent link: https://www.econbiz.de/10011039280

Enhanced index tracking with multiple time-scale analysis

Li, Qian; Bao, Liang - In: Economic Modelling 39 (2014) C, pp. 282-292

This paper considers the process optimal strategies for an enhanced index tracking problem. The investment goals are set to achieve a higher return than the benchmark by setting the portfolio's risk profile identical to the primary index risk factors. Return differences between the index and the...

Persistent link: https://www.econbiz.de/10010781995

On the median regression for SURE models with applications to 3-generation immigrants data in Sweden

Shukur, Ghazi; Zeebari, Zangin - In: Economic Modelling 28 (2011) 6, pp. 2566-2578

In this paper we generalize the median regression method to be applicable to system of regression equations, in particular SURE models. Giving the existence of proper system wise medians of the residuals from different equations, we apply the weighted median regression with the weights obtained...

Persistent link: https://www.econbiz.de/10010573371

Risk tolerance and entrepreneurship

Hvide, Hans K.; Panos, Georgios A. - In: Journal of Financial Economics 111 (2014) 1, pp. 200-223

A theoretical tradition argues that more risk tolerant individuals are more likely to become entrepreneurs but perform worse. We test and confirm these predictions with several risk tolerance proxies. Using investment data for 400,000 individuals, we find that common stock investors are around...

Persistent link: https://www.econbiz.de/10010718731

Integrating bank profit and risk-avoidance decisions for selected European countries: A micro–macro analysis

Gander, James P. - In: Economic Modelling 31 (2013) C, pp. 717-722

A two-equation integrated model is developed to capture bank profit and risk-avoidance decisions. Output is limited to customer loans. The profit function is based on output and selected inputs. Risk-avoidance (using the capitalization ratio) depends on micro and micro∗macro interactive...

Persistent link: https://www.econbiz.de/10011048764

Competitiveness and R&D competition revisited

Matsumura, Toshihiro; Matsushima, Noriaki; Cato, Susumu - In: Economic Modelling 31 (2013) C, pp. 541-547

This paper formulates a duopoly model of firms concerned with relative profits as well as their own profits and investigates the relationship between the degree of competitiveness in a market and R&D expenditure. We find a non-monotone relationship between the two variables. When the duopoly...

Persistent link: https://www.econbiz.de/10010636322

Analyzing long-term average adjustment of financial ratios with spatial interactions

Mate-Sanchez, Mariluz; López Hernández, Fernando A.; … - In: Economic Modelling 29 (2012) 4, pp. 1370-1376

The aim of this paper is to put forward a beta convergence model using spatial interaction to evaluate the dynamics of financial ratios. We overcome some of the limitations that come from the traditional partial adjustment model by relating both models. We show that the parameters of the two...

Persistent link: https://www.econbiz.de/10011048947

Irreversibility, mean reversion, and investment timing

Wong, Kit Pong; Yi, Long - In: Economic Modelling 30 (2013) C, pp. 770-775

This paper examines the effect of irreversibility on investment under mean reversion. We develop a continuous-time model wherein a risk-neutral firm is endowed with a perpetual option to invest in a project at any time by incurring a fixed investment cost at that instant. The project, once...

Persistent link: https://www.econbiz.de/10010608241